The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1887-11-22

thC pSOpIS tneTe LOOK up the matter GnSy
considered it from the plain stand point of
the law. He believed Armstrong to be an
honest man. When he went away he ex-
planned that there would be five per cent.
commission, five per cent. expenses and
two per cent. off, which was in accordance
with the usage of the London market.
The position of the syndicate was simply
this: They said in effect, eve bet five per
cent. we will float these bonds, and if we
don't float them we will take them our
selves at five per cent By the law of the
stock board they could not subscribe for
bonds unless unable to dispose of them.
Therefore they used every effort to get
these bonds subscribed AS a matter OF
fact this syndicate brought about twenty
one times the subscription asked. They
carried out their contract, having done
their duty, there was now no syndicate If
a number OF these bonds had not been sub
scribed for they would be bound to sub
scribe for them at five per cent. That was
the whole story OF the syndicate. The ex-
penses OF floating this first loan were low
for small country as little known as Ha-
wall. We had Melted more than had been
Republic at their first appearance on the
London market. After the subscribers
had been allotted their proportion the
bonds were placed upon the stock board
but they could not reach that stage unless
they were bona fde. He did not believe
but that these bonds were fiOated honestly,
well managed and could not have been
managed for less, although there was a
point there. Had the syndicate been let
alone they would have brought the bonds
up to ITO, but when they reached 10S the
telegram came saying, "donht sell any
more bonds" Dollar bonds had been
issued in London in very rare instances,
but they were not saleable. Armstrong
and Matheson had acted honestly in every
way, and it would be to our interest to
send forward these bonds. If the instruc-
tons to our agents had not been carried
out, there was no reason why we should
punish the widow and the orphan who
were the principal holders of the bonds
now. 1t was said that England never in
terfered between debtor and creditor,
which was true when there was a DISPOSE
ton to do right; but England had inter
fered in the cases oil Turkey and Egypt.
If the right thing were not done here Eng
land would interfere. 1t might then cost
ten times Els 900 hereafter
Noble Smith said there were three ques-
tons to be cOnsidered-the legal the
moral and the question of expediency or
policy. Legally, it was unquestionable
that we were not bound to deliver the
out because it was not in conformity with
the Act. On the moral question he had
great doubt. AS a matter of policy he
had no doubt that it would assume great
Importance if we should take any course by
which it would appear to disinterested
people that we had acted unwisely. 1t was
almost certain that we should have to bor-
row in the future. Our rights had not
| been trampled upon by anyone but our
| financial agents If we took any course by
which the bondholders would have trouble
the majority of people would think we
were in the wrong Our bonds would be
| stricken off the list, and Hawaiian bonds
would come to be regarded, not only in
London, but elsewhere, as dangerous
things. There would be undue haste if we
attempted to get the bonds off the follow
| ing day.
Minister Thurston said one point had
not been adyerted to- 1t might be said
that the form of bond asked for was not in
| accordance with the statute. We might
| offer them a bond that was. They would
| reply, we don't want that kind of bond ;
give us back our money. We don't know
| ok fI,,oc fa No
| as agreed by your agents. Could we then
| pay the money back? 1t had been ex-
pended in various directions. We must
| be ready to bite before barking.
| Noble Waterhouse-The money can be
got.
Minister Thuston-Perhaps SO. 1t was
said that one citizen would subscribe $780,
600, another $50, 600 But he would like to
| know about the other $3.50, 900, and have it
down in black and white before taking
| this course. It had been said by Noble
| Baldwin that we should do what was right
| and never mind the consequences. Bnt
there was no moral question involved
| here. We had to consider our best bust
ness interests. 1t was not always good
thing to stick out for ones strict legal
rights. In thrashing our agents we should
be injuring the bondholders, and we should
| have the right to do the former just as
much after the delivery of the bonds as
! before He agreed with Noble Wilder
that no personal consideration should
stand in the way, but if such enterprises
| as his were to benefit the country they
must be considered. He did not say that
suit should be brought against the
agents. He first wished to know all the
facts Therefore he could not support
| Noble Baldwin's position. The best course
was that set forth by Rep. Kinney's
amendment He at least approved of its
| spirit.
Rep. C. Brown argued that the bonds
should be sent forward by the first oppor-